Detailed Business Environment Analysis Report for Morrisons Company

This report provides a comprehensive analysis of the business environment, focusing on the retail firm Morrisons. It begins by defining different types of firms, including public, private, and charitable organizations, and their respective purposes. The report then delves into the size and scope of various organizations, using the Crown Prosecution Services, Sainsbury's, and the British Heart Foundation as examples. It further examines the interrelation of different functions within Morrisons, such as research and development, human resources, and finance, and how these functions contribute to achieving organizational objectives. The report also assesses the positive and negative impacts of the macro environment on business operations and conducts internal and external analyses to identify the strengths and weaknesses of the business. Finally, it explores the relationship between these strengths and weaknesses and external macro factors, offering a detailed understanding of Morrisons' business environment.

Business Environment

Table of Contents
TASK 1 ...........................................................................................................................................1
P.1 Different types and purpose of firm ....................................................................................1
P.2 Size and scope of different types organization.....................................................................3
TASK 2............................................................................................................................................5
P.3 Interrelation of different functions and their use to achieve objectives................................5
TASK 3 ...........................................................................................................................................6
P.4 Determining positive and negative impact macro environment on business operations......6
P.5 Internal as well as external analysis to identify strengths and weakness..............................8
TASK 4 ...........................................................................................................................................9
P.6 Strengths and weakness interrelated with external macro factors .......................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business and business environment are various factors that can affect the operations and
activities in the company. It includes the internal and external factors. Thus company has to
create strong policies and plans so that they can easily adopt these factors. This helps the form to
give strong competition to other company (Arasti, Zandi and Talebi, 2012). Thus it can feasibly
enhance their revenues. Assignment describes about the Morrisons company which is a retail
firm. It was found in U.K. In 1899. Report explains about the different types, size and scope of
organization. It further explains about the interrelationship of various functions in the
organization and their relation to the organizational structure. It also describes about the various
contemporary examples to show the negative and positive impact of macro environment on the
operations of the business. It further describes about the internal and external strengths of a
particular business and their relation with external factors.
TASK 1
P.1 Different types and purpose of firm
Business involve all activities and operations in the organization. Thus they can easily
perform all activities and operations effectively and efficiently (Bar-Isaacm and Shapiro, 2013).
It includes the process and techniques so that firm can easily run their operations and tasks. Each
business has a different purpose and thus they can easily accomplish the objectives. Various
types of firms and their purpose are:
Types Overview Purpose
This is the business which
involves the public company.
Their objective is to fulfil the
needs and demand of all
people who are living in the
society. Company can easily
solve all issues and problems
of all workers and thus they
can easily increase their
standard. They provide good
and superior services and thus
For example there is a
company which is Crown
Prosecution services. They are
created so that there are no
frauds and thus they can easily
enhance their revenues. It was
found in 1986 in England.
They have more employees so
that they can perform them in
an innovative manner. They
tries to decrease the criminal
They create long term policies
and plans sp that they can
easily perform legal
investigation against the
offences and crimes. Thus as a
result they can easily solve all
problems and issues created by
the organization.
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they can maintain good and
unique position in minds of all
people. There is no cheating
and malpractices as govt also
interfere in their activities and
procedures.
offences and thus they can
encourage the working and
thus they can easily enhance
revenues and thus they can
earn more revenues. It was
headed by the public
prosecutor. Thus they can take
various steps to enhance the
profits.
Second is the private company.
It's main object is to earn more
revenues. They are limited by
the equity shares and
debentures. Thus as a result
they can easily promote their
services. There is no govt
interference.
Sainsbury is the company
whose objective is to earn
more profits. It is the company
which is limited by liability.
They do not have time and do
not have proper guidance so
that they can manage all
activities and operations. This
helps the manager to grow. It
is important that company has
to register under the
companies Act. They perform
all activities and operations so
that firm can enhance their
profits.
Their main goal is to enhance
their revenues and market
share. They have set a
objective that they can provide
superior quality of products at
lesser costs. They only focuses
on the innovation and thus
they can provide products at
lesser costs. It helps them in
accomplishing the targets and
objectives.
Third is the charity in which
company can perform all
operations and tasks in a better
and effective manner. They
give various benefits to the
society and they do not work
British heart Foundation is the
charity in U.K. They solve
issues and disputes of many
people. They also solve heart
problems and thus they can
provide effective services to
Its purpose is to reduce the
heart problems and issues.
Thus they can easily give
various benefits to the society
and thus it is good purpose
which directly serves the
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for the purpose of profits. all people. society. Hence as a result they
can find the heart problems
and can solve problems of
people. Through this al people
can directly becomes healthy.
P.2 Size and scope of different types organization
There are different size and scope of various organizations. Thus the size and scope of
various companies are:
Crown prosecution services
Background Products and
services
Vision and
mission
Objectives and
size
Legal structure
They are social
firms which
investigates the
matter related to
the crimes and
thus they an
easily solve all
problems and
issues of all
people.
There are various
suggestions given
to company
regarding the
prosecutes and
various other
issues.
It has a vision that
that the case has
to arranged in a
proper manner.
They are not big
and their only
operate their task
in England.
They have a
suitable structure
in which there is
support so that
they can easily
solve every case.
They take good
decisions and thus
they can easily
encourage others
be that best
results can be
derived.
They encourage
every case in
court so that they
can operate in a
good manner.
They also support
the prosecution
by Witness.
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Sainsbury
Background Products and
services
Vision and
mission
Objectives and
size
Legal structure
This is the retail
company in U.K.
which have
suitable market
share.
They deliver all
suitable products
such as skin care
and fragrances
etc.
Their main
objective is to
increase the
happiness level
and thus they can
enhance
satisfaction level
of all people.
It is a big
company so that
it can enhance
more revenues
and can increase
market share.
Firm do not have
legal and
effective structure
so that they can
gain more
revenues and they
have limited
liability in which
they do not issue
more shares other
than the amount
of liability.
It is the biggest
retail company
and thus it can
provide good
quality of
products with
services.
It provides gifts
and services.
It can provide
good and high
quality of
products to
various users.
They tries to
enhance the
satisfaction of all
people.
They needs to be
registered in the
companies act,
1996.
British heart foundation
Background Products and
services
Vision and
mission
Objectives and
size
Legal structure
This is the charity
organization in
They performs a
good research so
Their main
mission is to
They can only be
operated in U.K.
They have a good
and suitable
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U.K. And thus it
can solve all
problems and
issues faced by
many heart
patients.
that they can
perform all things
in a better and
correct manner.
solve and deal
with all problems
and issues.
And do not have a
huge business.
structure as they
can take approval
from the
government
It was found in
1999
They can provide
various services
such as
cardiovascular
services to all
people
They can be
suitable and other
reasons can easily
be found out
It is a main
department that
can solve the
heart issues and
problems
Mainly two shareholders are there that can properly manage all activities in an effective
and suitable manner (Beaumont, WHITAKER and PEDERSEN, 2013). First is internal
stakeholder which has a huge impact on task of firm. Second is the external stakeholders in
which govt and external bodies can influence the company.
TASK 2
P.3 Interrelation of different functions and their use to achieve objectives
Various functions are performed so that they can perform all activities and operations on
a large scale (Typical business organisation departments and functions, 2018). The relation
between various functions in Morrisons are:
Research and development: Morrisons has to evaluate thee needs and demand of the
market so that they can easily create various products according to various requirements of all
people. They can also research of new technologies so that they can operate with use of
advanced tools and techniques. This also helps the company in performing the innovation in the
company (Reddick and Roy, 2013). They can innovate good and superior quality of products so
that they can perform better in a legal and efficient manner. They can deliver the superior quality
of products to all users. Thus as a result Morrisons can earn huge revenues and thus they can also
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increase the market share. Hence as a result they can maintain positive image in minds of all
people and in the industry.
Human resource department: It is the department which selects any people in the
company. They selects them on basis of various skills and capabilities. They can recruit qualified
and competent employees in their firm so that they can give good results (Bryman and Bell,
2015). HR department also assists the marketing section to promote their products in a unique
manner. Thus as a result they can easily promote various products to company. They can recruit
and select the qualified and talented staff members by taking many tests and interviews. Thus
they can easily select many people in the firm. Hence as a result they can give various
suggestions related to the company's products and thus they can earn more revenues (Chadee,
and Roxas, 2013). Thus through this they can enhance their reputation in the company.
Finance department: This department helps in determining the finance which is required
to be invests in all activities and operations. They requires some cash and they also have pay to
other department (Low, Chen and Wu, 2011). Thus finance section can create reports so that
they can create a budget. This helps them in determining the expenses and revenues. Through
this they can also help the marketing department so that they can help them in taking the funds
from finance section and thus they can invest in useful purpose. Thus as a result they can easily
enhance the operations and can reduce the unnecessary expenses and can directly increase the
profits. Through both the department all tasks can easily be carried out and company can easily
accomplish their targets.
TASK 3
P.4 Determining positive and negative impact macro environment on business operations
There are various positive and negative factors of macro environment on activities of
business. Each has a positive as well as negative impact. Factors used in Morrisons are:
Basis Strength Weakness
Political: In this company has
to follow the rules and
regulations so that it can have
positive impact on the
company's operations. Thus
This factor can give many
benefits to the company. There
is decrease in corporate tax in
from 30 to 27. Thus company
can perform in a better and
Company for surviving in the
market continuously make
changes in the plans and
policies. It can be done in a
proper manner so that good
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better and effective work can
be performed.
effective manner. and superior results can be
determined.
Economical: It is a process
which explains about
economic situation of a
country. It involves the growth
rate, inflation and deflation
etc.
In this people eras a huge
amount of money and thus
they can spend in a lavish
manner. This leads to growth
and development of a nation.
Brexit has also impacted the
tasks on the company.
Through this many people had
left their jobs and thus it
creates depression in the
economy.
Social It is the process in
which company has to fulfil
the wants of society
They can fulfil all needs and
wants by delivering them
superior quality of products.
There is a penalty which can
have a negative impact on
operations on the company.
Thus Morrisons have to
consider these factors
properly.
Technological It is the process
in which company can use of
advanced and effective
technology so that they can
create advanced products.
Morrison can directly increase
their sales by selling various
products through online
applications and thus it can
create a unique position in the
market.
There are different complaints
by various users and thus they
had loose many users and thus
it leads to low profits.
Environmental It is the duty
of manager that they can use
that techniques and tools that
can directly protect the
environment
Company use less of carbon
material. This helps the
company in reducing the
pollution level from the
country. Thus they can
enhance the profits.
Sometimes company uses
material of livestock which
can have negative impact on
operations and task on then
company. This is due to
penalty which can be imposed
on them.
Legal: It includes the
processes which can be created
by legal bodies like courts etc.
Morrisons has to properly
follow the rules and
regulations so that they can
Mostly in U.K, regulations
have major impact on
operations of the business as
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manage their activities in
proper manner. They have to
consider about the health and
safety act.
there are various changes in
the policies and plans of the
business.
P.5 Internal as well as external analysis to identify strengths and weakness
Management needs to create effective and efficient strategies and policies so that they
can easily survive in the market (Cheng, Yip and Yeung, 2012). Thus they have to determine the
strengths and weakness. SWOT analysis of Morrisons are:
Strengths
 Morrisons have efficient supply chain and a great distribution network. This helps the
company to evaluate the strengths. It is great strength for the company (Chetwood, and
et. al.2014). Thus it can deliver the superior quality of goods to many users in minimum
time.
 It can a large portfolio and thus it can create various products in minimum time. Thus it
can offer products in minimum time to various users. Through this they can easily satisfy
users in minimum time. Thus they can earn more revenues. It is one of the biggest supermarket and thus it can easily offer many products at lesser
costs. Hence as a result they can easily enhance their earnings and can easily expand
their tasks in various parts of the country (Welford, 2013) .
Weakness
 It has limited geographical area so thus it can create various applications and thus it can
create various applications in limited time. Due to this they cannot expand their
operation's and thus they have limited market share.
 They do not have a strong loyalty programme and thus they cannot earn more revenues.
Thus they cannot attract many users. Thus they cannot maintain the brand loyalty and
thus cannot earn huge revenues (Kian Chong, Shafaghi and Leing Tan, 2011). Morrisons make delay in their response and thus they cannot react to the changes in the
effective manner.
Opportunities
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 Morrison can generate the global presence and can become the market leader in U.K.
Thus they can perform better and can enhance the market share.
 In this company discount channels and convenience retail stores are fastest sector that can
increase the sales of the company. Company can easily move into the non retailing sector and thus it can easily enhance
their earnings in less period of time.
Threats
 There is huge competition from many companies such as Tesco, Asda and Aldi etc. Thus
it has to create strong policies and plans so that it can beat the competitor (Craig and
Campbell, 2012).
 There is increase in the risk that is involved in technologies and thus they cannot perform
in a better manner (Cross and Miller, 2011).
 There are various changes in the plans and policies in the company. Thus as a result they
have to modify the plans and strategies so that it can easily survive in the market.
TASK 4
P.6 Strengths and weakness interrelated with external macro factors
Internal strengths and weakness are related to the macro factors. Thus as a result they can
easily related with the external macro factors. Morrisons can create various policies and
strategies so that they can beat their competitors. The different factors that can be related with
strengths and weakness are: Political: There is a particular strength related to political sector. Company needs to
evaluate the rules and regulations of the govt sector so that they can easily enhance their
services. Morrison has good and strong relationship with the government. Thus it can
easily fulfil the needs and wants of society and thus they can easily enhance their
operations. Due to modification in the govt rules and regulations Morrison also has to
make change in their plans policies so that they can run all their operations and tasks in
the better manner. This is the weakness of the company. This needs to be improved in
time so that they can manage all transactions in a better manner (Hilton and Platt, 2013). Economical: Company has to consider the different factors that can affect the company
in a drastic manner. There is an economic factor that is recession and inflation. It
generally sells product at lower cost thus it is a beneficial situation for the company if it
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faces inflation. Thus it can easily give strong competition to other competing companies.
If there is recession then company can create effective and efficient policies so that it can
face the recession and then it can easily satisfy the customers. This strength plays a major
role and thus the company can easily enhance their revenues. Social: Morrisons have high distribution network and good supply chain and thus it can
easily enhance their operation's in a better and effective manner. Hence it can fulfil all
needs and wants of people. Thus it can easily satisfy the needs and wants of people. This
is the biggest strength and hence it can easily enhance their revenues. Sometimes
company cannot fulfil all needs and wants of many people (Dibrell, Craig and Hansen,
2011). Thus it has to create strong plans and policies.
 Technological: Due to many technological changes company has to monitor the
technological needs and thus they have to create various plans and policies (Hamilton and
Webster, 2015). Morrison can easily launch various application so that they can easily
capture many users. They have to spend huge amount of money and this is their biggest
weakness. This is their weakness. They have to create policies so that they can give
competition to other firms.
CONCLUSION
It can be concluded from above report that business have to evaluate the factors that can
influence the firm. Various types and size of the company. Interrelationship of various functions
and their relation with structure. Various examples that have positive and negative impact on
firm and strengths with weakness that have linked with the external macro factors.
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REFERENCES
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Business opportunity and responsibility. Elsevier.
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Cheng, T. C. E., Yip, F. K. and Yeung, A. C. L., 2012. Supply risk management via guanxi in the
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Chetwood, M.K., and et. al., International Business Machines Corp, 2014. Transforming a legacy
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Hilton, R. W. and Platt, D. E., 2013. Managerial accounting: creating value in a dynamic
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Online
4.1 Typical business organisation departments and functions. 2018. [Online]. Available
through :<http://www.open.edu/openlearn/money-management/organisations-
and- management-accounting/content-section-4.1>.
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